Fed Rate Hike Boosts Copper Prices Amid Chinese Demand
Copper prices have edged up on Monday as last week's interest rate hike by the US Federal Reserve removed months-long uncertainty over rates. The benchmark three-month copper price on the London Metal Exchange rose 0.06% to $14,530.5 a metric ton by 0300 GMT.
The most-traded copper contract on the Shanghai Futures Exchange also edged higher, gaining 0.37% to 109,940 yuan ($16,419.49) a ton. Analysts from Chinese broker Everbright Futures noted that the Fed hike dispelled uncertainty in the market, while extreme mine-side tightness and ultra-low Chinese domestic inventories formed a floor for prices.
Strong demand in China continues to support copper prices, with the Yangshan copper gauge finishing last week at $124 a ton, its highest in nearly four years. Expectations of inventory replenishment ahead of next week's National Day holiday in China also provided price support, according to Everbright Futures analysts.